Welcome to the real estate newsletter. You know that other shoe we’ve all been waiting for? Well, there are strong signs that the downside is beginning, and Southern California’s historically hot real estate market is finally showing signs of cooling.
The pandemic has pushed our housing market to breathtaking extremes, as the past few years have seen record prices, spot bidding wars, and buyers willing to pay and give up almost anything to land a home. Things have gotten so bad that we’ve published a comprehensive house hunting guide to help readers navigate the market.
But lately, list prices have come down. Fueled by rising mortgage rates and inflation, homeowners across the region — and the country — are slashing prices by hundreds of thousands of dollars. This is a relief to buyers who have been waiting for some type of sign that things are slowing down. For sellers? Not really.
On that note, we also hear from a landlady, who wrote an op-ed about listing her 1920s bungalow in South Los Angeles. With the market frenzy in recent years, real estate has started to look like just an investment, but its history reminds us that our homes, and the context surrounding how and when we buy and sell them, mean much more than price. indicated on the sales panel outside.
On the luxury side, our two biggest sales of the week were both related to missing icons.
The first is Betty White, the legendary comedian who died late last year. His two homes hit the market soon after; the first, a beach house in Carmel-by-the-Sea, sold almost immediately, and the second just traded in Brentwood for $10.678 million. It’s a curious sale given that potential buyers weren’t even allowed to view the house before buying it – a strong indication that it was sold as a teardown.
The other sale is tied to Lee Iacocca, the late automotive titan who developed the Ford Mustang. He died in 2019 and his family sold their three-decade-old Bel-Air mansion for $19.5 million to reality TV star Lilly Ghalichi. Ghalichi flipped the house quickly, offloading it this week for $27.7 million – a profit of $8.2 million.
If you’re on the buyer’s side, we saw a sports-centric listing in Hidden Hills, where NFL star Jared Goff offered his custom home with a putting green and chipping pad for $7.5 million. dollars. The list comes after Goff, who was drafted by the Rams with the No. 1 pick in the 2016 NFL Draft and spent five seasons with the team, was traded to the Detroit Lions last season.
As always, while keeping up to date with the latest news, visit and like our facebook pagewhere you can find real estate stories and updates throughout the week.
A hot market is cooling
Home sellers are increasingly slashing their asking prices as buyers, constrained by higher mortgage rates and headline inflation, have become less willing to jump into the housing market at all costs, writes Andrew Khouri.
The growing number of price cuts, showing in data from Southern California and across the country, is one of the strongest signs yet that the previously scorching market, fueled by low mortgage rates and wars spot auction, cools.
For buyers, the market already looks very different from the fierce competition of several months ago.
“The market is not the same as it was a month ago,” said Lindsay Katz, a Los Angeles agent at Redfin, the brokerage firm.
The sentimental cost of selling
The house – a small 1920s bungalow in South Los Angeles near Slauson Avenue – is for sale. In the morning Cassandra Lane writes, she checks her emails and Zillow reminds her that something she cherishes is being gifted to strangers.
“Fear is gathering in my stomach. I am not ready to leave. But two months ago, after ongoing discussions with my husband Marcus, a realtor… It’s a seller’s market right now. House prices are at an all-time high, but experts predict another real estate crash is imminent “I agreed to let him list our house to ‘test the market.’
“We bought our house for $400,000 in 2015. It was overkill to qualify for the loan and buy the house from the black woman who owned it. She said she was “quietly” testing the market and simultaneously trying to protect her home from investors who were knocking down neighboring homes at prices people like us couldn’t afford. “This region is changing so much,” she told us.
“Now when I look at our list of houses, I feel like the investors she hated.”
Betty White’s house is selling without opening its doors
It was quick. Weeks after Betty White’s longtime Brentwood home went up for sale, the Colonial-style spot sold for $10.678 million, or $103,000 above the asking price.
Buyers were quick to snap up the comedian’s real estate portfolio – whether due to the hot pandemic market or deep-pocketed buyers wanting a piece of White’s legacy. His other home, a beach house overlooking the ocean in Carmel-by-the-Sea, recently sold for $10.775 million, or $2.825 million more than the price.
Brentwood’s sale is even more surprising given that potential buyers weren’t allowed in. According to the SEO agency, the tours only featured the exterior.
Reality TV star overturns the Auto Titan estate
The longtime home of Lee Iacocca, the late automotive visionary who developed the Ford Mustang and saved the Chrysler Corp. bankruptcy, just traded Bel-Air for $27.7 million.
Iacocca lived in the house for nearly three decades, entertaining guests such as Frank Sinatra and Ronald Reagan, before dying in 2019. His daughter sold the estate a year later for $19.5 million to Lilly Ghalichi, a reality TV star who appeared on the Bravo show “Shahs of Sunset”.
The sale marks a quick and successful turning point for Ghalichi. She and her husband, Dara Mir, renovated the interiors during their two-year stay before putting it up for sale for $32million in April and landing an offer less than a month later.
Former Rams star looking to sell after trade
NFL star Jared Goff, who spent five seasons with the Rams before being traded to the Detroit Lions last year, has listed his Hidden Hills home for $7.5 million.
The California native has owned the estate since 2018, records show. He made a few additions during his stay, adding a green with an upper level chip carpet to the lush green backyard.
Covering 1.4 acres, the contemporary-style resort makes the most of its space with a 5,000 square foot main house, a 1,100 square foot guest house and an expansive patio that overlooks a custom pool and spa. .
What we read
Following the January 6 hearings, Curbed peeked to an “oddly well-represented” profession among the Capitol rioters: real estate agents. The outlet gave updates on five real estate agents. One of them served 60 days in prison and started selling houses again. One is running for governor of Michigan.
Now here’s a really shocking number: $27.8 trillion. That’s the total net worth of US homes in the first quarter, according to the Federal Reserve. This is a record and an increase of almost 20% compared to the previous year, as prices and the rate of inflation have increased. The hill has history.